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Do I need third party insurance before hiring a contractor for work on my ST unit?

Home maintenance contractor


Hi, I am the owner of a property in a sectional title unit. I am needing to do some minor repairs and renovations to the unit , nothing structural, mostly painting touch ups, the invoice cost is a little over R18,000.

I have been instructed that before any work can commence I first need to take out Third Party Liability and a Damage to Surrounding Property Liability Insurance Cover of R10m.

Should this not already by covered by the complex’s insurance? I am still waiting on quotes but I have a feeling that the premium on an insurance of this amount will be more than the cost of the work to be done. Is there any way around this?

Please advise – Deon


Hi Deon, the contractor should have insurance protecting against any possible damage.

Normally the contractor should have All Contractors’ Risk Insurance as part of being a builder.  This has to do with health and safety, as well as any possible damage caused by third-parties like contractors.

For larger contracts, such as building renovation or alteration for example, the body corporate has to inform their insurance company of any change in risk.

Got a burning question? Email mariette@hometimes.co.za and we’ll be sure to assist you

IHFMAnswered by Michael Bauer, general manager of property management company IHFM


Mariette Steynberg is a qualified economist with a post-graduate diploma in financial planning. She has enjoyed working on holistic financial plans for clients in various stages of life, as well as a development economist assessing the socioeconomic impacts of new developments. When she is not working, Mariette enjoys parenting her quirky, delightful toddler girl. Cloth diapering, Eskimo kisses and the importance of reading to your child are all causes close to her heart. Mariette is passionate about financial education and hopes to use the experience she has gained to share knowledge with HomeTimes’ readership. Her goal is to provide information that is implementable by everyone.

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